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European Council adopts 'two-pack,' including closer fiscal surveillance

The European Council adopted on Monday the so-called «two-pack» of fiscal regulations aimed at further improving economic governance and coordination in the eurozone.

The two-pack consists of “a regulation on enhanced monitoring and assessment of draft budgetary plans of euro area member states, with closer monitoring for those in an excessive deficit procedure” and “a regulation on enhanced surveillance of euro area member states that are experiencing or threatened with serious financial difficulties, or that request financial assistance”.

Under the regulations, which were approved by the European Parliament in February, each member state will have to submit by October 15 its draft budget for the following year.

“If an examination of the draft budget reveals a serious non-compliance with the budgetary obligations laid down in the Stability and Growth Pact, the Commission will request a revised draft budget,” said the EU Council.

Also, the regulations mean that a member state experiencing “severe financial disturbance or receiving precautionary financial assistance” will come under enhanced surveillance.